Azerbaijan, BP sign MoU on decarbonized energy systems, renewables

23 February 2021 12:13 (UTC+04:00)

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By Ayya Lmahamad

Azerbaijan’s Energy Ministry and BP have signed a memorandum of understanding on assessing potential for large-scale decarbonized and integrated energy and mobility systems, including renewable energy projects in Azerbaijan’s regions and cities, the ministry’s press service reported on February 22.

“The document signed today provides new opportunities for cooperation with BP, our long-term strategic partner in the oil and gas sector, on decarbonization and renewable energy projects. I do hope that we will achieve shared success with BP while transforming to modern energy trends stemming from global climate challenges,” Energy Minister Shahbazov said.

In turn, BP’s Regional President for Azerbaijan, Georgia and Turkey Gary Jones underlined that the MoU signed provides a new platform for cooperation leading potentially to new partnership opportunities for BP and Azerbaijan.

“We are pleased to have this opportunity to collaborate with the Ministry of Energy towards achieving BP’s and Azerbaijan’s respective sustainability goals. (…) BP has been Azerbaijan’s energy partner for nearly three decades and now when BP is aiming to significantly scale-up its low-carbon energy business and transform its mobility and convenience offers, we believe there is great potential to build on our successful partnership with Azerbaijan,” he said.

BP has recently partnered with the cities of Houston and Aberdeen and by signing this MoU we would like to explore similar partnership opportunities with regions and cities in Azerbaijan to bring integrated energy and mobility solutions including clean energy aimed at driving down emissions, Jones added.

According to the memorandum, a Steering Committee and a Working Group will be established and a Master Plan will be developed for decarbonization of relevant Azerbaijan’s regions or cities.

The Master Plan will cover the development of trends for clean energy projects, low-carbon transport, green buildings, waste management, clean industry, natural climate solutions, integrated partnerships, as well as the development of integrated and decarbonized energy and mobility systems.

The memorandum was signed in the context of Azerbaijan's economic diversification, creation of a competitive energy market, clean environment and “green growth” agenda and BP's announcement in 2020 of its “net zero” ambition, the ministry said

Shahbazov noted that President Ilham Aliyev identified reduction of greenhouse gas emissions by 35 percent by 2030 among the country’s socio-economic development priorities.

The ministry said that the development of the renewable energy sector in the country and creation of green energy zones is strongly supported, adding that foreign and local investors are invited to the process of providing Azerbaijan with long-term, sustainable, affordable and environmentally friendly energy sources.

BP first arrived in Azerbaijan and opened its first office in Baku in June 1992. Over the past years, in partnership with the Government of Azerbaijan, BP-operated projects such as, Azeri-Chirag-Gunashli (ACG), Shah Deniz, Baku-Tbilisi-Ceyhan (BTC) and South Caucasus Pipeline (SCP), which have contributed to the development of the Caspian Sea as a modern hydrocarbon province.

Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad